Survival outlook brighter for MyTravel

TROUBLED tour operator MyTravel looks set to secure its financial survival next month after revealing today two-thirds of its bondholders will back its restructuring.

Its key £1.3bn refinancing depends on 75% of debt holders agreeing to a three-year extension on the repayment of £222m of convertible loans.

The group has agreed to raise the annual interest rate on the loans and, in a circular today, showed the move had helped win acceptances in principle from 66%. A final vote is due on 15 September.

The former Airtours has been fighting for its life since a series of profits warnings last summer when it was forced to reveal a potential £50m black hole in its accounts. Banks agreed to the £1.3bn rescue package two months ago.